XRP News: Ripple, SEC, and the Anticipation of a Critical Ruling
- XRP saw a 2.27% dip on Monday, reversing a 1.81% gain from Sunday.
- The SEC v Ripple lawsuit remained static, keeping investors awaiting the Judge Torres ruling.
- John E. Deaton, Crypto Law US founder, pinpointed discrepancies in the SEC application of the Howey Test.
The Monday Overview
On Monday, XRP declined by 2.27%. Reversing a 1.81% gain from Sunday, XRP ended the day at $0.5123.
Attorneys and US Lawmakers Target SEC Chair Gary Gensler
There was no court activity in the SEC v Ripple case to influence investor sentiment. Investors await Judge Analisa Torres ruling on the SEC motion for interlocutory appeal. Almost one month has passed since the SEC responded to the Ripple opposition to the motion for interlocutory appeal.
Judge Torres will likely take her time preparing the ruling. While addressing the SEC motion, Judge Torres will also want to address criticism from Judge Rakoff and make her ruling more watertight.
While time fuels uncertainty, the significance of the ruling justifies a lengthy period of deliberation. Nonetheless, a court ruling could arrive at any time, exposing XRP and the broader market to the risk of a prolonged SEC appeal process.
With no motions or rulings to consider, Crypto Law US founder John E. Deaton responded to a post relating to the SEC Chair, saying,
“According to him, if an asset is being promoted by someone it transforms the asset into a security.”
“The SEC has publicly admitted that it ignores the common enterprise factor of the Howey Test.”
Deaton was not alone in targeting the SEC Chair. Financial Services Committee Chairman Patrick McHenry also shared his views on X (formerly Twitter), saying,
“SEC Chair Gary Gensler refuses to schedule a Commission vote to provide Congress with requested documents. Should Gensler continue to stonewall, Republicans will have no choice but to issue the first subpoena to the SEC from my Committee to compel their production.”
XRP Price Action
XRP sat below the 50-day and 200-day EMAs, sending bearish price signals.
A break above the 200 and 50-day EMAs would support an XRP move to the trend line and $0.5470 resistance level. Selling pressure will likely intensify at $0.5450, with the trend line confluent with the $0.5470 resistance level.
SEC v Ripple and Coinbase (COIN) case-related commentary will influence investor sentiment.
However, an XRP fall below the $0.5042 support level would bring sub-$0.48 into play.
The 49.64 14-Daily RSI reading supports a break below the $0.5042 support level before entering oversold territory.
In the 4-hourly Chart, XRP sits below the 50-day and 200-day EMAs, affirming bearish price signals.
A break above the 50-day and 200-day EMAs would support an XRP move toward the trend line.
However, an XRP failure to break above the 50-day EMA would bring the $0.5042 support level into play.
The 14-4 Hourly RSI 44.63 reading suggests an XRP break below the $0.5042 support level before entering oversold territory.